--Updates Guidance to Reflect Second Quarter Results and Second Half
Visibility--

NEW YORK--(BUSINESS WIRE)--
G-III Apparel Group, Ltd. (NasdaqGS:GIII) today announced operating
results for the second quarter of fiscal 2017 that ended July 31, 2016.

For the quarter ended July 31, 2016, G-III reported that net sales
decreased 7% to $442.3 million from $473.9 million in the year-ago
period. The Company reported a net loss for the second quarter of ($1.3)
million, or ($0.03) per share, compared to net income of $12.5 million,
or $0.27 per diluted share, in the prior year's comparable period. The
Company's results for the second quarter included professional fees of
approximately $3.0 million, equal to approximately $0.04 per share, net
of taxes, in connection with its pending acquisition of Donna Karan.

Morris Goldfarb, G-III's Chairman, Chief Executive Officer and
President, said, "We sustained momentum in our wholesale businesses with
consistent well designed high quality product that our customers
responded to. We believe our wholesale outerwear opportunity is intact
for the full year despite a reduction by retailers in early season
orders as they shifted their focus toward a greater degree of in season
replenishment and reorder business. We believe that the risk of
continued softness in the retail outlet environment has somewhat abated
as we have now liquidated inventory from last year's holiday season and
are currently adding some great new fall products to our store
inventory. Lastly, we believe forecasted cool weather trends should be
in our favor this fall and holiday season compared to last year and
should provide the impetus for improved sales for Wilsons and Bass in
the second half."

Mr. Goldfarb concluded, "We expect to generate stronger operating
margins in the back half of the year as we begin to realize improved
sales and gross margins in both our retail outlet and wholesale
businesses, as well as better leverage on expenses in our wholesale
outerwear and newly launched and expanded Tommy Hilfiger and Karl
Lagerfeld lines. The fundamentals of our wholesale apparel and
accessories business remain excellent. This is significant as it aligns
with the substantial growth opportunities we have with Calvin Klein,
Tommy Hilfiger and Karl Lagerfeld. It is also consistent with our
planned strategy for the acquisition of Donna Karan which will be to
develop and build categories of Donna Karan women's apparel and
accessories throughout the world. We believe that this set of
opportunities supports an eventual doubling of our annual revenues to
roughly $5 billion in five years. Today, we have submitted with our Form
8-K that includes this press release, an investor presentation outlining
our strategy and preliminary sales and operating income targets for
Donna Karan for the next three years. While we have revised our
short-term expectations to reflect external challenges in outerwear and
in the outlet center environment, we are as confident as ever in our
ability to grow revenues and increase our profitability over the next
few years."

Outlook

The Company today revised its prior guidance for the full fiscal year
ending January 31, 2017. The Company is now forecasting net sales of
approximately $2.48 billion and net income between $102 million and $106
million, or a range between $2.16 and $2.26 per diluted share, compared
to its previous guidance of net sales of approximately $2.56 billion and
net income between $120 million and $125 million, or a range between
$2.55 and $2.65 per diluted share. For the fiscal 2016 year ended
January 31, 2016, net sales were $2.34 billion and net income was $114.3
million, or $2.46 per diluted share.

The current year's fiscal 2017 forecast includes professional fees of
approximately $3.0 million, equal to approximately $0.04 per share, net
of taxes, in connection with its pending acquisition of Donna Karan, but
does not reflect the significant additional expenses related to this
acquisition that the Company expects to incur in the second half of the
fiscal year or the impact of the issuance of new G-III common stock to
the seller.

On an adjusted basis, the Company is now forecasting non-GAAP net income
per diluted share for fiscal 2017 between $2.20 and $2.30 per diluted
share as compared to $2.44 per diluted share in fiscal 2016. Non-GAAP
net income diluted per share for fiscal 2017 excludes the effect of the
expenses incurred in the second quarter of fiscal 2017 in connection
with the pending acquisition of Donna Karan, and does not reflect the
significant additional expenses that the Company expects to incur in the
second half of fiscal 2017 in connection with this acquisition or the
impact of the issuance of new G-III common stock to the seller.

The Company is now projecting adjusted EBITDA for fiscal 2017 to
decrease from the prior year between 2% and 5% to between approximately
$199 million and $206 million. This compares to its previous guidance of
adjusted EBITDA between approximately $228 million and $236 million.
Adjusted EBITDA for fiscal 2016 was $210.1 million. Adjusted EBITDA for
fiscal 2017 does not reflect the significant additional expenses related
to this acquisition of Donna Karan that the Company expects to incur in
the second half of the fiscal year.

For its third fiscal quarter ending October 31, 2016, the Company is
forecasting net sales of approximately $940 million compared to $910
million in the comparable quarter last year. The Company is also
forecasting net income for the third fiscal quarter between $70 million
and $76 million, or between $1.50 and $1.60 per diluted share, compared
to net income of $87.2 million, or $1.87 per diluted share, in last
year's third quarter. The third quarter forecast does not reflect any
additional expenses related to the pending acquisition that may be
incurred in the third quarter of the fiscal year.

On an adjusted basis, excluding items resulting in other income in the
third fiscal quarter ended October 31, 2015 of $0.02 per share, net of
taxes, non-GAAP net income per diluted share was $1.85 in the third
fiscal quarter ended October 31, 2015.

Non-GAAP Financial Measures

Reconciliations of GAAP net income per share to non-GAAP net income per
share and of GAAP net income to adjusted EBITDA are presented in tables
accompanying the condensed financial statements included in this release
and provide useful information to evaluate the Company's operational
performance. Non-GAAP net income per share and adjusted EBITDA should be
evaluated in light of the Company's financial results prepared in
accordance with GAAP.

About G-III Apparel Group, Ltd.

G-III is a leading manufacturer and distributor of apparel and
accessories under licensed brands, owned brands and private label
brands. G-III's owned brands include Vilebrequin, Andrew Marc, Marc New
York, Bass, G.H. Bass, Weejuns, G-III Sports by Carl Banks, Eliza J,
Black Rivet and Jessica Howard. G-III has also entered into an agreement
to acquire the Donna Karan brand, including DKNY. G-III has fashion
licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth
Cole, Cole Haan, Guess?, Jones New York, Jessica Simpson, Vince Camuto,
Ivanka Trump, Ellen Tracy, Kensie, Levi's and Dockers brands. Through
our team sports business, G-III has licenses with the National Football
League, National Basketball Association, Major League Baseball, National
Hockey League, Hands High, Touch by Alyssa Milano and more than 100 U.S.
colleges and universities. G-III also operates retail stores under the
Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein
Performance names.

Statements concerning G-III's business outlook or future economic
performance, anticipated revenues, expenses or other financial items;
product introductions and plans and objectives related thereto; and
statements concerning assumptions made or expectations as to any future
events, conditions, performance or other matters are "forward-looking
statements" as that term is defined under the Federal Securities laws.
Forward-looking statements are subject to risks, uncertainties and
factors which include, but are not limited to, reliance on licensed
product, reliance on foreign manufacturers, risks of doing business
abroad, the current economic and credit environment, the nature of the
apparel industry, including changing customer demand and tastes,
customer concentration, seasonality, risks of operating a retail
business, customer acceptance of new products, the impact of competitive
products and pricing, dependence on existing management, possible
disruption from acquisitions, risks relating to G-III's proposed
acquisition of Donna Karan International Inc. and general economic
conditions, as well as other risks detailed in G-III's filings with the
Securities and Exchange Commission. G-III assumes no obligation to
update the information in this release.

Non-GAAP diluted net income per share is a "non-GAAP financial measure"
that excludes (i) expenses incurred in connection with the pending
acquisition of Donna Karan International in the second quarter of fiscal
2017 and (ii) other income in fiscal 2016 which consisted of the
reduction of the estimated contingent consideration payable in
connection with the acquisition of Vilebrequin. Management believes that
this non-GAAP financial measure provides meaningful supplemental
information regarding our performance by excluding acquisition expenses
and other income that is not indicative of our core business operating
results. Management uses this non-GAAP financial measure to assess our
performance on a comparative basis and believes that it is also useful
to investors to enable them to assess our performance on a comparative
basis across historical periods and facilitate comparisons of our
operating results to those of our competitors. The presentation of this
financial information is not intended to be considered in isolation or
as a substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP. GAAP diluted net income per share
does not include significant additional expenses that will be incurred
in connection with the pending acquisition of Donna Karan International
in the third and fourth quarter of fiscal 2017 or the impact of the
issuance of new G-III common stock to the seller.

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

RECONCILIATION OF FORECASTED AND ACTUAL NET INCOME TO
FORECASTED AND ACTUAL ADJUSTED EBITDA

Adjusted EBITDA is a "non-GAAP financial measure" which represents
earnings before depreciation and amortization, interest and financing
charges, net, and income tax expense and excludes (i) expenses incurred
in connection with the acquisition of Donna Karan International in the
second quarter of fiscal 2017 and (ii) other income in fiscal 2016 which
consisted of the reduction of the estimated contingent consideration
payable in connection with the acquisition of Vilebrequin. Adjusted
EBITDA is being presented as a supplemental disclosure because
management believes that it is a common measure of operating performance
in the apparel industry. Adjusted EBITDA should not be construed as an
alternative to net income as an indicator of the Company's operating
performance, or as an alternative to cash flows from operating
activities as a measure of the Company's liquidity, as determined in
accordance with generally accepted accounting principles. Net income
above does not include significant additional expenses that will be
incurred in connection with the pending acquisition of Donna Karan
International in the third and fourth quarter of fiscal 2017.